Once analysed, you can differentiate the profitable segment from the non-profitable ones.

Why: Do they buy it because itвЂ™s their need, or is it a luxury product for them?.

Where: Where do they live? Where do they use the product?.

When: When do they buy the product? Is it daily or rarely? When do they use the product?.

What: What type of products and services do they buy now and what do they expect from it? Does your product fits their requirements?.

Are they children, teens, millennials, or baby boomers? Are they males or females? Are they service classed or self-employed? WhatвЂ™s their yearly income?

Who: Start with questioning yourself about who is going to buy your product.

You have to focus on the 5 WвЂ™s of your potential customers to select the most beneficial target market for your business. The target market analysis starts with yourself.

The industry giants dominate the market because they succeed in serving the right product and service to the right person. Trying to sell a hamburger to vegetarians will only lead to wastage of time, effort, and money and a poor brand image. Specifying a target market for your business is an essential step to remain viable. It is the most minimal, yet a viable product released to a few target customers to get as much feedback as possible.

Release An MVP: Releasing an MVP is a great practice to validate your assumptions about the target market.

You can either select a similar target market or choose a slightly different segment.

Analyze Your CompetitorsвЂ™ Customer Base: Analyse your competitorsвЂ™ customer base: Who they target through their marketing efforts? Where do they sell their products?.

Analyze Your Customer Base: If youвЂ™re already in business, the best way to define your target market is to collect your customer data and to analyse it.

It is why the customers will prefer your product over others.

Identify Your USP: Your unique selling proposition is what differentiates you from the competitors.

Segment The Market: Segment your businessвЂ™s serviceable market according to their demographics, geographics, psychographics, and behavioural patterns.

You can follow the following steps to define a target market for your business.

Target marketing makes it easier for small companies to compete with large established companies, innovators to disrupt the market, and startups and other companies to get an advantage over their competitors. Given the current level of competition and limitation of resources, it is not viable to target everyone in the market and wait for the people to like your product.

Target market watch